Family businesses think beyond the next financial year. Many are planning for the next generation. We should encourage that ambition, not make it harder.

For more than 30 years, I worked in our family's Chesterfield engineering business, including 17 years as a second generation Managing Director. We employed local people across Derbyshire and South Yorkshire, trained apprentices and invested in the skills that helped our business grow.

I know first-hand what it takes to build a successful family business, and how much responsibility owners feel towards their employees, families and communities.

Today, through Cloud-Busting, I support business owners across Derbyshire and beyond, navigating growth, succession and exit.

So, what did I want from this Budget? Greater confidence to invest, employ and plan for the future. Sadly, I fear we've missed another opportunity.

Let's take family business succession.

Before Rachel Reeves' 2024 Budget, a qualifying family engineering business worth £5 million could potentially pass to the next generation free of inheritance tax through Business Property Relief. Under the new rules, that same business could face a £500,000 inheritance tax liability, assuming the full £2.5 million relief allowance is available and excluding other exemptions.

A family could inherit a thriving Derbyshire manufacturing business, employing local people and supporting local suppliers, yet face a substantial tax bill simply to retain ownership. That £500,000 could fund new machinery, apprenticeships or additional jobs. Instead, the next generation may face ten years of payments.

The government increased the allowance from its original proposal in 2025, which I welcome, but the underlying problem remains.

And what about the next generation of employees?

With around one million young people not in education, employment or training, we're wasting enormous potential. Yet businesses face rising employment costs, with another minimum wage increase announced.

I'm passionate about apprenticeships, I've seen people join with little experience and grow into highly skilled, valued employees. But training takes time and money.

Training new workers and apprentices takes time and money. | contributed

placeholder image — Training new workers and apprentices takes time and money. | contributed

Why not reduce Employer's National Insurance for under-24s, or raise the threshold at which employers start paying it? Either would ease cashflow and overheads. With AI transforming entry-level jobs, helping young people develop workplace-ready skills has never been more important.

Then there's business rates. I welcome additional relief for retail, hospitality and leisure as our high streets desperately need support, and the electricity discount scheme will help eligible manufacturers.

But what about the smaller engineering businesses that don't qualify? Across Derbyshire, they employ skilled people, invest in equipment and support vital supply chains such as defence, rail and energy, yet face rising employment, energy and property costs and the new targeted business-rates relief largely overlooks them.

Why should a manufacturer employing 25 people receive less consideration than a similarly sized retailer?

Of course, government needs tax revenues to fund public services. But shouldn't we focus on helping more businesses become successful, profitable employers, rather than continually increasing pressure on those already contributing?

Family businesses think beyond the next financial year. Many are planning for the next generation. We should encourage that ambition, not make it harder. Because when Derbyshire's family businesses thrive, our communities thrive alongside them.

Mel Archbould is founder of Cloud-Busting, a Chesterfield-based business consultancy